Page 1 of 3 * * * PUBLIC NOTICE * * *

SIERRA PACIFIC INDUSTRIES-ANDERSON DIVISION

ANNOUNCEMENT OF FINAL PE RMIT DECISION OF A

CLEAN AIR ACT PREVENTION OF SIGNI FICANT DETERIORATION PERMIT

THAT REGULATES THE EMI SSION OF AIR POLLUTANTS

PERMIT APPLICATION NO. SAC 12-01

Final Agency Action and Project Description: On April 25, 2014, the United States Environmental Protection Agency (EPA) Region 9 issued its final decision to grant conditional approval, in accordance with the Clean Air Act Prevention of Significant Deterioration (PSD) regulations (40 CFR 52.21), to Sierra Pacific Industries-Ande rson Division (SPI or SPIAnderson) to construct and operate a new coge neration unit and ancillary equipment at its existing lumber manufacturing facility in Anders on, California. The project consists of a new biomass-fired cogeneration unit, including a 468 MMBtu/hr stoker boiler, capable of generating 31 megawatts (MW) of gross electrical output, a 256 horsepo wer (hp) natural gas-fired emergency engine, and a th ree-cell cooling tower.

The SPI-Anderson facility is located at 19758 Riverside Av enue, Anderson, California 96007 (Assessor’s Parcel No. 050-110-025). The site is approximately 0.5 mile west of Interstate 5, and approximately 2 miles north of the City of Anderson. The facili ty is bordered on the northeast by the Sacramento Ri ver, on the northwest by a priv ate parcel, on the southwest by Union Pacific Railroad tracks and State Route (SR) 273 and on the southeast by private parcels. The mailing address for SPI-Anderson is P.O. Box 496028, Redding, CA 96049-6028.

Equipment currently located at this location includes a coge neration unit consisting of a 116.4

MMBtu/hr stoker boiler and asso ciated equipment capable of producing 4 MW of gross electrical output, for which the Shasta Count y Air Quality Management District (SCAQMD) issued a PSD permit (Permit No. 94-PO-18) on June 15, 1995.

PSD Permit No. SAC 12-01 became effective on June 6, 2014. Pursuant to section 307(b)(1) of the Clean Air Act, 42 U.S.C. § 7607(b)(1), judicial review of this final permit decision, to the extent it is available, may be sought by filing a pe tition for review in the United States Court of Appeals for the Ninth Circuit within 60 days of publication of notice of this final permit

decision in the Federal Register

.

Background Information: On March 3, 2003, EPA withdrew the PSD delegation from several permitting authorities in Region 9, including SCAMQD, making EPA the PSD permitting authority for Shasta County. See 68 FR 19371.

In March 2010, SPI submitted a PSD application to EPA for an approval to construct and operate a new cogeneration unit and ancillary equipment, including a 468 MMBtu/hr st oker boiler, at its Anderson facility. The new cogeneration unit w ould be capable of producing 31 MW of grow electrical output. This change to the facility is a PSD majo r modification under the Clean Air Act and EPA’s PSD regulations at 40 CF R 52.21. On September 13, 2012, EPA Region 9Page 2 of 3 proposed to issue a PSD permit modification for the new cogeneration unit and ancillary equipment for nitrogen oxides (NO x ), carbon monoxide (CO), particulate matter (PM), PM less than 10 microns in diameter (PM 10 ), and PM less than 2.5 microns in diameter (PM 2.5 ). We accepted comments on the PSD permit proposal from September 13, 2012 through October 17, 2012. On February 19, 2013, after consideration of the public comments received, EPA Region 9 issued the final PSD permit in accordance with 40 CFR 124.19 and explaine d that it would be effective in 30 days unless our action was appeal ed to the EPA’s Environmental Appeals Board (EAB). Within that 30 day time frame, various parties filed appeals with the EAB, which suspended the permit’s effective date.

On July 18, 2013, the EAB remanded the permit to EPA Region 9 in part. The EAB directed EPA Region 9 to reopen the permit proceedings to hold a public hearing, issue a final permit decision and respond to any new comme nts received during the hearing. See In re Sierra Pacific Industries (Anderson Processing Facility) , PSD Appeal Nos. 13-01 to 13-04, slip op. at 67 (EAB July 18, 2013).

Following these events, we have revised the PSD permit by including GHG emission limits and related requirements, as requested in a PSD application provided by SPI to EPA Region 9 in August 2013, and subsequent supplemental material s provided thereafter. SPI submitted these application materials due to the uncertainty of issuance of the ma ndate for the Court of Appeals

for the Circuit for the District of Columbia decision issued on July 12, 2013 vacating EPA’s regulation deferring from the PSD requirements th e carbon dioxide emissions resulting from the combustion of certain biological materials, includ ing materials such as wood, wood waste, forest residue, and agricultural material. See, Ctr. for Biological Diversity v. EPA , 722 F.3d 401 (D.C. Cir. 2013). We have also taken this opportunity to revise certain other conditions (primarily related to monitoring, performance testing, and recordkeeping) in the PSD permit to address

minor technical issues we identified sin ce February 2013. We provided notice of public comment of the proposed PSD permit and a public hearing per 40 CFR 124 on November 8, 2013. In response to the EAB remand, we he ld a public hearing on December 10, 2013. We accepted public comments on the proposed PSD permit from November 8, 2013 until January 10, 2014.

On April 25, 2014, we issued the final PSD permit , our responses to public comments, and other key documents relevant to the final PSD perm it. In our correspondence and notifications regarding the final PSD permit, we stated that the final permit decision will become effective 30 days after the service of notice of the decision unless our decision is appealed to the EAB pursuant to 40 CFR 124.19. Three petitions were submitted to the EAB. On June 5, 2014, the EAB dismissed these petitions for review of the final PSD permit decision for lack of jurisdiction.

As EPA Region 9 has completed the remand proceedi ngs in response to the EAB’s Order, we are now issuing our final permit decision granting a PSD permit to SPI for the SPI-Anderson facility, PSD Permit No. SAC 12-01. All conditions of PSD Permit No. SAC 12-01, as issued by EPA Region 9 on April 25, 2014 is final and effective on June 6, 2014.Page 3 of 3 Additional Information: Key portions of the Administrative R ecord for this decision (including the final permit, all public comments, EPA’s re sponses to the public comments, and additional supporting information) are availa ble through a link at our website, www.epa.gov/region09/air/perm it/r9-permits-issued.html#psd , or at www.regulations.gov (Docket ID # EPA-R09-OAR-2012-0634).

Hard copies of the final permit and EPA’s responses to the public comments, and the

Administrative Record for this action, may also be viewed in person, Monday through Friday from 9:00 AM to 4:00 PM, at the EPA Region 9 address below. Due to building security procedures, please call Shaheerah Kelly at (415) 947-4156 to arrange a vis it at least 72 hours in advance. Hard copies of the final permit a nd EPA’s responses to the public comments are available upon request at the following:

E-mail: R9airpermits@epa.gov

U.S. Mail: Shaheerah Kelly (AIR-3) U.S. EPA Region 9

75 Hawthorne Street San Francisco, CA 94105-3901

Phone: (415) 947-4156

The contact information above may also be used to request copies of other portions of the

administrative record for this action.

Please bring the foregoing notice to the attention of all persons who would be interested in this

matter.

*** END OF ANNOUNCEMENT *** Issued June 6, 2014